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Friday, May 10, 2013

ERM in the Philippines

It has been a while since I have posted but my clients across Asia have kept me busy with their various work related projects. This generally takes precedence over blogging.

This week however, Causal Capital delivered a presentation on what Enterprise Risk Management really means in terms of scope for risk managers in a corporation.In this short blog posting, we look at various elements of Enterprise Risk Management for small medium enterprises and what should be in scope. There is also a link to the main presentation that was delivered to a group of seasoned risk practitioners in Manila.

The Scope of ERM

Enterprise Risk Management means alternate things to different people but the general angle risk analysts seem to take is to create a risk assessment program or tick-list sheet, then torture staff in their company to assess what they often don't fully understand. This is fine but that is not Enterprise Risk Management in my opinion. ERM is beyond simple risk assessments or tick lists and it should consider a much wider charter of risk quantification in your company.In our speech we talk about the importance of initiating some of the following activities listed below:

[1] How to consider risk appetite taking in a business

[2] The importance of parametric risk modelling

[3] Measuring and managing Credit Risk

[4] Measuring and controlling Market Risk

[5] Can quality assurance really be integrated with ERM

[6] Why BCP should be merged with ERM

[7] How to aggregate risk across a business

[8] New methods for reporting enterprise risk

In addition to the above, we look at the use of ISO 31000 as the headpiece of enterprise risk management, its benefits and quandaries.

Author

Martin Davies is a risk framework architect with strong domain knowledge across a diverse set of risk fraternities, a background in banking front-to-back and the ability to articulate business requirements into functional information technology concepts. He is focused on structured products for emerging markets and works with several tier one banks, regulators and brokerages across South East Asia.